AB Dynamics plc reported mixed results for the first half of fiscal 2026, with sales amounting to £49 million as the company navigated a challenging operating backdrop in its testing services business in China.
Order intake for the period totaled £64 million - a 3% decrease versus the first half of 2025, but a 45% increase relative to the second half of 2025. The Group reported an order book of £47 million at December 31, 2025, representing a £5 million increase year-on-year and covering roughly 70% of the company’s expected revenue for fiscal 2026.
Operationally, AB Dynamics described customer activity in its Testing Products division as encouraging, citing particularly healthy demand across Asia-Pacific and North America. The company’s Simulation division also displayed positive momentum, supported by an equipment contract with a major original equipment manufacturer and robust software sales.
These positives were offset by material underperformance in the Testing Services division in China. Volumes tied to a new contract with a European OEM were approximately 50% lower than anticipated, shrinking that revenue stream to under £3 million. The company said its US testing services performance was in line with expectations.
As a result of the weaker-than-expected China performance, AB Dynamics recorded an impairment charge of approximately £16 million - primarily non-cash - and initiated a strategic review of the China operation to determine the appropriate next steps.
Despite the China setback and the impairment, the company reiterated that fiscal 2026 EBITA is expected to be in line with consensus estimates of £24.4 million, which implies a full-year margin in excess of 20%. Cash position improved modestly: net cash stood at £39.3 million as of February 28, 2026, up from £35.5 million at December 31, 2025.
The results portray a business with mixed regional dynamics - resilient product and simulation demand in key markets, but a testing services segment exposed to contract-specific volume risk in China. Management’s decision to maintain consensus EBITA guidance, while recognizing a substantial impairment and launching a strategic review, will focus attention on the company’s ability to stabilise China operations and convert its order book into revenue through the remainder of fiscal 2026.
Key data points
- Sales (H1 2026): £49 million
- Order intake (H1 2026): £64 million - down 3% year-on-year, up 45% versus H2 2025
- Order book at Dec 31, 2025: £47 million (+£5 million year-on-year), covering ~70% of fiscal 2026 revenue expectations
- Impairment related to China testing services: ~£16 million (primarily non-cash)
- Fiscal 2026 consensus EBITA guidance: £24.4 million, implying >20% margin
- Net cash: £39.3 million (as of Feb 28, 2026) vs £35.5 million (Dec 31, 2025)